The Aggregate Supply Curve Is

question 92

Multiple Choice

The aggregate supply curve is:

• A) always vertical.
• B) always horizontal.
• C) a summation of individual supply curves and is always upward sloping.
• D) horizontal, vertical and upward sloping.

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Definitions:

Industry

The organized economic activity connected with the production, manufacture, or construction of goods and services.

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The expenses related to insuring a car against accidents, theft, and other risks.

Economies of Scale

Cost advantages reaped by companies when production becomes efficient, as the cost per unit of output decreases with increasing scale.

Long-Run Average Cost Curve

A graphical representation that shows the lowest average cost at which a firm can produce any given level of output in the long run, when all inputs are variable.